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RELEVANT LINKS: League of Minnesota Cities Information Memo: 6/22/2016 Securing Payment of Utility Charges Page 37 Another form of security that is mutually agreed on between the utility and the debtor or the trustee, but an administrative expense priority does not constitute an assurance of payment. On request of a party and after notice and a hearing, the court may order modification of the amount of an assurance of payment. On request of a party in interest and after notice and a hearing, the court may order reasonable modification of the amount of the deposit or other security necessary to provide adequate assurance of payment. B. Other types of bankruptcy 11 U.S.C.A. 366(b). For other bankruptcy proceedings, a city can terminate utility service to the property twenty days from the date of the filing unless the owner or bankruptcy trustee provides a deposit or some other assurance of payment for continued utility service. 26 U.S.C.A. § 6321. 26 U.S.C.A. § 6323. In a Chapter 7 bankruptcy, an individual debtor typically attempts to discharge all debts incurred before filing. However, certified unpaid utility charges are a valid tax lien, and may have priority over other liens. IRS liens most likely take precedence over liens related to unpaid charges for utilities. C. State law Minn. Stat. § 514.67. In Re Lanford, 10 B.R. 129 (U.S.B.C. D. Minn. 1981). In re Sheldahl, Inc., 298 B.R. 874, (Bankr. D. Minn. 2003). In addition, state law makes governmental services a prior lien in bankruptcy proceedings by operation of law, although once a person files under the bankruptcy code, federal law takes precedence over state law. In one case, the bankruptcy panel upheld a city’s claim for payment of unpaid utility charges against a debtor under a statutory lien theory. XVI. Conclusion Municipal utilities may develop reasonable charges and may simultaneously use a variety of tools and procedures to secure payment for valid utility charges. Developing a process, with clear timelines and ample notice provisions will increase collection of utility charges. The city utility ordinance should mirror the process, timelines and notice provisions a utility uses to seek payment for utility charges.